Overview

• The Treasury’s midweek auction rolled over only about 61% of maturing peso liabilities, leaving roughly ARS 5.7–5.9 trillion unrefinanced.
• The central bank and Treasury unveiled emergency steps including a surprise bond sale geared toward bank encajes and a retroactive hike in reserve requirements.
• Short-term funding costs jumped into the 60–71% range with intraday peaks above 90% as Argentine ADRs tumbled nearly 9% and the S&P Merval lost around 4.4%.
• Aggressive interventions kept the official dollar near ARS 1,300 per US dollar while MEP and blue rates held in the ARS 1,307–1,325 corridor.
• Markets are awaiting Monday’s bond auction to mop up remaining pesos and are watching U.S. inflation data and election developments for the next market trigger.